Brief:.nc note for B. B=a.-_!ev Zsc. -zr TSRT, March 1989 APMX Repeat tox_~coloqy tests on APEX are neede,-4, as the initial tests gave acverse results. The earliest the outside laboratorv can ob,:a-4- ::=a Off-:ze aporoval is the end of 19B9. AP-_ has a better fillLng power than bot-h D:27 and G13 with Lower nicotine and chemical losses than DIET (similar to G12.) Typically I kS of DIET or G13 saves between 0.65 kg to 0.75 kg of tobacco blend, whereas I kg of APM saves around I kg of tobacco bland. A2ZX &Lso has lower nicotine and chemical losses than DIET (similar to G13.) APEX will have higher operaz~~g coats however, estimated at 110o/kg excluding depreciation versus SOD/kg for DIET. (Direct variable costs axe estimated at 75p/kg for APEX versus 15p/kg for DIET from Corby.) Clearly the potential bem-efits will- depend on the price of tobacc:7, existing expanded tobacco faciLities and the size of oDerazion. It had been estizated that around 10 BAT companies and associates could find s=e financial benef_": from the use of APEX, alt-hough this does not take account of the write-off costs for the DT_7T plant at Corby. :f zox;coloc y 'ieszs prove sat's-actory, the next stace would be puz=-ase a IOC kg per hc-,:r pilot plant instaLled at ---by, at a:,. estimated cost cf- E2.5 mr-Ilion, to prove ihe design anc f----- scale 50C kq/hour plant would cost an es,:imated E4.8 m~11licn and a to reDlace DIZT f--= Corby (1600 kg/liz, would cost ar. E3 to EIC millicn. :n view of the hig' expicsion risk w-4--'- ----;s pr-o-cess, we on-y envisaqe install-ing planms in a few soph_'sz_zca-:__-_ c=-=:_-es Canada, Aus--ralia). Mea::-oihJle, as vou know, X,:stzalia are csnsider4-mc a C:27 =Ianz~ to -:z G12. do ~naz thev mav no-: be willing to -,rLte 4t of f 4n 4 or _5 years to A.P!X. 77 ~e recent -.=,cress made -with --'-e low cost hLgn velcctzy afr dz-:ez, wh4ch s -e~ng ins-:alled &nc :eszec -4n Singapore, =,,:--s t~ie ccz=.er=_4&L viability of tne APEX process in dciiJoz. T`n~s type of --yez g: .-ves nat,,Lral ex?ansior anz~ reduces the recru-'re-rent for hig.n expar-si:n products. 7heref=re the pc~ential financial benefits of APEX aze rg,~-.:c9c4 =-_ercial a-=-cat4on st4':_ furthez. 7 he =a:or expend-4t-_-e on this pro4ect was on _;ts basic -ab-cra.=r; deve'o=ent and on an engineering study to assess 'Lne cost of a --ant and I ,.he safety risks involved in the process. :n the last two vears, ex--endituze has been vir-=ally nil. This was because of ouz, csncerrls over the co=ezc-4a-' viability of the scheme and --'-e period' of de-'av for t--xicolocly testing. Our propcsa-L -'-a that we should co=Lete the '~oxicclogy test~_ng (cost E90,000) so that we have that data read4ly available should we wish to rev4se the project but carr-i out no further !evelopinent or -zilot mlant work. In ahort, APIX should be shelved. 7'~- !~azc` 1989. C:: XIT":N'P'ZnT-%T(')13ACCOLITIGATIO~N. BATCo document for Province of BritiSh Columbia 26 October 1999